Modi linked with Coal controversy: Congress

12 years ago | Posted in: Latest Politics News | 614 Views

Linking Gujarat chief ministerNarendra Modi with a coal block allocation controversy, opposition Congress on Thursday sought a probe by the Central Bureau of Investigation (CBI) into the Mine Developer Cum Operator (MDO) deals of ChhattisgarhMineral Development Corporation (CMDC).

“CMDC’s deals are suspicious as its modus operandi is to enter into joint venture with companies and have agreements which are heavily loaded in favour of other parties. CMDC acted just like a middleman”, AICC general secretary B K Hariprasad told reporters at the state Congress office.

He said CMDC appointed Gujarat based Adani group-which he claimed is considered close to chief minister Narendra Modi-as mine developer com operator (MOD) through a tender.

Now the CMC is talking about setting up a washery and supplying washed coal to Bhushan Steel in violation of the terms and conditions, he pointed out.

Hariprasad said the Congress had earlier raised the CMDC’s similar MOD deal with Nagpur based firm, allegedly close to BJP chief Nitin Gadkari.

Pointing out that Chhattisgarh chief minister Raman Singh has been maintaining that the Centre had allocated coal blocks to companies even without state government recommendation, he said CMDC got allocation of Chendipada and Chendipada -II coal block stating that it had signed an Memorandum of understanding (MOU) with M/s Bhushan Steel and Strips Limited for supply of coal to its existing and proposed power plants. “This was done without recommendation from the Orissa government”, he said.

Hariprasad said this block, having coal reserves of 1588.99 MT, were allocated to CMDC for the joint venture company-UCM Coal Company Limited– it had formed with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) and Maharashtra Power Generation Corporation (MAHAGENCO).

Stating that the CMDC had sought coal block allocation on the basis of joint venture agreement (JVA) with Bhushan Steel and for supplying 500 MT raw coal to this company, the AICC general secretary said this coal block was allocated to CMDC without the recommendation of Orissa government. Ever since the Coalgate scam surfaced, the joint venture agreements reached between Chhattisgarh Mineral Development Corporation (CMDC) with private players and selection of Mine developer cum operator (MOD) are under cloud with the opposition pointing out that these deals were aimed at favouring these companies.

Former minister and legislator Mohammad Akbar told TOI, “CMDC has 51 % share in its joint venture firm with Nagpur based SMAS Infrastructure and Solar Explosives. Now the joint venture agreement says that the coal produced by JVC from Shankarpur (Bhatgaon-II) coal block will be sold commercially to various consumers in the open market which will be sole responsibility of SMS and Solar”.

While CMDC holds majority share in the joint venture company, he pointed out, the state owned corporation agreed to a clause that the JVC shall have a managing director who shall be a nominee of the SMS and Solar, the Nagpur based firms, considered allegedly people close to the BJP president Nitin Gadkari.

“The entire process adopted by CMDC for selection of MOD is ab initio illegal and we are pressing for a CBI probe into all deals by the state owned mineral development corporation”, he added.

Source:timesofindia.com

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